A Manager’s Guide to Employee Engagement

A Manager's Guide to Employee Engagement

GUEST POST from David Burkus

We need to talk about employee engagement surveys. It’s great news that organizations are paying attention to engagement and its impact on performance. The bad news is that senior leaders seem to want a clear metric to judge how satisfied and motivated their people are. Management requires metrics, after all. Decisions require data.

Employee engagement surveys are the tool of choice to measure a company’s employee experience, motivation, and overall culture. Gallup research suggests that employee engagement is linked to many other important organization metrics like productivity, employee retention, and profitability. Unfortunately, Gallup has also found engagement is on the decline across the United States, particularly among remote, hybrid, and younger workers.

Ultimately, the reasons for the recent employee engagement decline and the inability to turn it around stem from a few problems with how most leaders treat engagement as a concept and engagement surveys as a tool. In this article, we’re going to review the top three problems with employee engagement surveys and offer a solution for each one that will not only boost engagement scores…but will engage your people.

Employee Engagement Problem #1: People don’t take the surveys seriously

Employee engagement surveys are only as important as leadership says they are, and the reliability can be a little flawed. No, don’t throw out surveys completely because the data might be flawed, but it’s important to know the context of how this engagement data is collected.

Your employee gets an email. It typically goes something like this:

“Dear Valued Employees, Our company has brought in “GloboEngage360”, to survey different aspects of the company according to the point of view of its employees. This survey is not mandatory, but your feedback is greatly appreciated and will remain anonymous.” Sincerely, Management

Put yourself in an employee’s shoes. They have meetings all day. They have tasks to do and people to coordinate with. If it isn’t mandatory, something like this is going right to the bottom of the list of things to do, or just put into the trash immediately.

And most employee’s gut reaction to a message from leadership or outside consultants saying this is anonymous is, “This is definitely not anonymous.” So, will employees take this survey seriously at all? Hard to say. Is there some value to be had from collecting the data this way? A little, but it’s best used as a starting point into your own investigation into engagement.

But we also must consider leadership’s point of view. Survey goes out. The survey consultancy collects the data, makes a nice packet of insights, and boils down your people’s performance, happiness, and productivity all into nice little percentages. But the data is only as serious as the seriousness of the people who filled out the survey, and their seriousness is determined by how seriously they think leaders care about the survey.

Seriously.

Employee Engagement Solution #1: Share the results

This should be an easy thing to do. And it’s the easiest way to communicate that you’re serious about employee feedback and improving the employee experience. It’s a mystery why companies don’t typically share the results with those who took the survey. By not sharing, people can only speculate, and they’re probably going to go to draw the worst-case scenarios like “The company is going to restructure” or “My job is in jeopardy.”

So, share the results. You may not have gotten an accurate and serious picture of engagement in the results you’re sharing, but when employees see that you considered their responses and you’re making changes as a result, they’ll give these questions more consideration next time a survey is sent around.

To articulate that these surveys matter to your team, you don’t need to send them the entire data file or even the summary report the consulting firm created for you. It can be way simpler than that. Just take the time to share:

What positive results you’re proud of.
Why you’re so proud of those results.
What unexpected results you received.
And what you’ll be changing as a result.

That’s it. Just a simple email, memo, or quick video on what senior leadership learned from the survey and what they’ll be building upon or changing completely because of the survey.

Employee Engagement Problem #2: Leaders Interpret Data Wrong

After a survey is taken, the team from human resources or the consulting firm administering the survey will compile everything and prepare a summary report. And this is where things can go really wrong. Often the report is broken down by the different questions asked, and the lower scoring the question the more attention it gets. If one item is particularly low, then we start a company-wide initiative to improve on that one item. Because when leaders only look at the company-wide data, they tend to make decisions that impact everyone… company-wide.

But if your company has issues, there’s a chance it’s not in every single department or every single team. Most people’s experience of work isn’t reflective of the entire company. It’s a commentary on the parts of the company they work with. Company culture is the average of the culture on each individual team.

You know what happens next. Now your top performing teams are subject to mandatory programs that will slow them down, confuse them, and ultimately make them feel punished. Those top performing teams need to be protected!

Employee Engagement Solution #2: Look team-by-team, not company-wide

When you look at the data, don’t just take the overall metrics and run with them. If you have direct contact with the agency you used, ask them, or ask your HR or culture team, to get the metrics broken down to the team level, or as much functional or regional separation as you can get.

And then use those metrics to isolate the teams that are under-performing in whatever areas you measured and cater a solution to that team. Talk to that manager. Talk to the people on that team. See what’s going on.

The solution for that individual team is not going to be solved by a company-wide solution. Big initiatives that touch every team in a company with the intent to weed out a problem often are too broad and diluted to fix the issue.

So, break those numbers down to the team level. Then, help the team leaders that are dragging the overall numbers down-and reward the team leaders who are serving their people well. Building a company culture is about building strong team cultures. It takes time, effort, and more than just the numbers and one big solution.

Employee Engagement Problem #3: Surveys are too infrequent

Employee engagement surveys are typically done once a year. Maybe twice. Remember, people don’t want to be inundated with surveys all year, and leadership and HR teams know that. So, companies will concentrate on that one survey ask a year. And companies will rely on HR and culture teams to implement a workplace environment that is inclusive, sparking innovation, and motivates and engages people.

It makes sense not to administer formal surveys too frequently throughout the year. HR should be very judicial when sending out surveys. But just because you’re not surveying people regularly, doesn’t mean you can’t be monitoring employee engagement regularly.

Employee Engagement Solution #3: Keep the conversation going on the team level

Managers can do their own anecdotal surveys, better known as a “conversation” with their team.

You, as a leader of your team, are ultimately responsible for your employees’ engagement and for fostering a purposeful culture. A company’s culture is the aggregate of all the teams’ cultures. This work really falls to you. Have ongoing conversations with your team and in your individual check-ins. Ask them what projects are going well. Ask them what they’re energy levels are like. Ask them how they’re interacting with their teams. And most importantly, ask them if there’s anything you can help with.

If you keep an open dialogue with your team about how things are going, the metrics from a yearly survey will not surprise or shock you. If you’re good, you’ll know before the survey.

Conclusion

Remember, a company’s culture is the sum of its team cultures. Invest in your teams, have open communication, and the engagement numbers will take care of themselves.

There’s a tendency to treat employee engagement like the score of a game, and so we shouldn’t be surprised when people try to game the system and improve the score. But the point of collecting all that data isn’t to learn how to improve a number. It’s to know where we need to pay more attention to our people and how we can help them feel more connected to their work and to the team they work with.

Image credit: Pexels

Originally published at https://davidburkus.com on May 16, 2024.

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Why Explainable AI is the Key to Our Future

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The Unseen Imperative

Why Explainable AI is the Key to Our Future

GUEST POST from Art Inteligencia

We’re in the midst of an AI revolution, a tidal wave of innovation that promises to redefine industries and transform our lives. We’ve seen algorithms drive cars, diagnose diseases, and manage our finances. But as these “black box” systems become more powerful and more pervasive, a critical question arises: can we truly trust them? The answer, for many, is a hesitant ‘maybe,’ and that hesitation is a massive brake on progress. The key to unlocking AI’s true, transformative potential isn’t just more data or faster chips. It’s Explainable AI (XAI).

XAI is not a futuristic buzzword; it’s the indispensable framework for today’s AI-driven world. It’s the set of tools and methodologies that peel back the layers of a complex algorithm, making its decisions understandable to humans. Without XAI, our reliance on AI is little more than a leap of faith. We must transition from trusting AI because it’s effective, to trusting it because we understand why and how it’s effective. This is the fundamental shift from a blind tool to an accountable partner.

This is more than a technical problem; it’s a strategic business imperative. XAI provides the foundation for the four pillars of responsible AI that will differentiate the market leaders of tomorrow:

Transparency: Moving beyond “what” the AI decided to “how” it arrived at that decision. This sheds light on the model’s logic and reasoning.
Fairness & Bias Detection: Actively identifying and mitigating hidden biases in the data or algorithm itself. This ensures that AI systems make equitable decisions that don’t discriminate against specific groups.
Accountability: Empowering humans to understand and take responsibility for AI-driven outcomes. When things go wrong, we can trace the decision back to its source and correct it.
Trust: Earning the confidence of users, stakeholders, and regulators. Trust is the currency of the future, and XAI is the engine that generates it.

For any organization aiming to deploy AI in high-stakes fields like healthcare, finance, or justice, XAI isn’t a nice-to-have—it’s a non-negotiable requirement. The competitive advantage will go to the companies that don’t just build powerful AI, but build trustworthy AI.

Case Study 1: Empowering Doctors with Transparent Diagnostics

Consider a team of data scientists who develop a highly accurate deep learning model to detect early-stage cancer from medical scans. The model’s accuracy is impressive, but it operates as a “black box.” Doctors are understandably hesitant to stake a patient’s life on a recommendation they can’t understand. The company then integrates an XAI framework. Now, when the model flags a potential malignancy, it doesn’t just give a diagnosis. It provides a visual heat map highlighting the specific regions of the scan that led to its conclusion, along with a confidence score. It also presents a list of similar, previously diagnosed cases from its training data, providing concrete evidence to support its claim. This explainable output transforms the AI from an un-auditable oracle into a valuable, trusted second opinion. The doctors, now empowered with understanding, can use their expertise to validate the AI’s findings, leading to faster, more confident diagnoses and, most importantly, better patient outcomes.

Case Study 2: Proving Fairness in Financial Services

A major financial institution implements an AI-powered system to automate its loan approval process. The system is incredibly efficient, but its lack of transparency triggers concerns from regulators and consumer advocacy groups. Are its decisions fair, or is the algorithm subtly discriminating against certain demographic groups? Without XAI, the bank would be in a difficult position to defend its practices. By implementing an XAI framework, the company can now generate a clear, human-readable report for every single loan decision. If an application is denied, the report lists the specific, justifiable factors that contributed to the outcome—e.g., “debt-to-income ratio is outside of policy guidelines” or “credit history shows a high number of recent inquiries.” Crucially, it can also definitively prove that the decision was not based on protected characteristics like race or gender. This transparency not only helps the bank comply with fair lending laws but also builds critical trust with its customers, turning a potential liability into a significant source of competitive advantage.

The Architects of Trust: XAI Market Leaders and Startups to Watch

In the rapidly evolving world of Explainable AI (XAI), the market is being defined by a mix of established technology giants and innovative, agile startups. Major players like Google, Microsoft, and IBM are leading the way, integrating XAI tools directly into their cloud and AI platforms like Azure Machine Learning and IBM Watson. These companies are setting the industry standard by making explainability a core feature of their enterprise-level solutions. They are often joined by other large firms such as FICO and SAS Institute, which have long histories in data analytics and are now applying their expertise to ensure transparency in high-stakes areas like credit scoring and risk management. Meanwhile, a number of dynamic startups are pushing the boundaries of XAI. Companies like H2O.ai and Fiddler AI are gaining significant traction with platforms dedicated to providing model monitoring, bias detection, and interpretability for machine learning models. Another startup to watch is Arthur AI, which focuses on providing a centralized platform for AI performance monitoring to ensure that models remain fair and accurate over time. These emerging innovators are crucial for democratizing XAI, making sophisticated tools accessible to a wider range of organizations and ensuring that the future of AI is built on a foundation of trust and accountability.

The Road Ahead: A Call to Action

The future of AI is not about building more powerful black boxes. It’s about building smarter, more transparent, and more trustworthy partners. This is not a task for data scientists alone; it’s a strategic imperative for every business leader, every product manager, and every innovator. The companies that bake XAI into their processes from the ground up will be the ones that successfully navigate the coming waves of regulation and consumer skepticism. They will be the ones that win the trust of their customers and employees. They will be the ones that truly unlock the full, transformative power of AI. Are you ready to lead that charge?

Disclaimer: This article speculates on the potential future applications of cutting-edge scientific research. While based on current scientific understanding, the practical realization of these concepts may vary in timeline and feasibility and are subject to ongoing research and development.

Image credit: Gemini

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Subtle Leadership

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Subtle Leadership

GUEST POST from Mike Shipulski

You could be a subtle leader if…

You create the causes and conditions for others to shine. And when they shine, you give them the credit they’re due.

You don’t have the title, but when the high-profile project hits a rough patch, you get called in to create the go-forward plan.

One of your best direct reports gets promoted out from under you, but she still wants to meet with you weekly.

When you see someone take initiative, you tell them you like their behavior.

You get to choose the things you work on.

You can ask most anyone for a favor and they’ll do it, just because it’s you. But, because you don’t like to put people out, you rarely ask.

When someone does a good job, you send their boss a nice email and cc: them.

When it’s time to make a big decision, even though it’s outside your formal jurisdiction, you have a seat at the table.

When people don’t want to hear the truth, they don’t invite you to the meeting.

You are given the time to think things through, even when it takes you a long time.

Your young boss trusts you enough to ask for advice, even when she knows she should know.

In a group discussion, you wait for everyone else to have input before weighing in. And, if there’s no need to weigh in, you don’t.

When you see someone make a mistake, you ignore it if you can. And if you can’t, you talk to them in private.

Subtle leaders show themselves in subtle ways but their ways are powerful. Often, you see only the results of their behaviors and those career-boosting results are mapped to someone else. But if you’ve been the recipient of subtle leadership, you know what I’m talking about. You didn’t know you needed help, but you were helped just the same. And you were helped in a way that was invisible to others. And though you didn’t know to ask for advice, you were given the right suggestion at the right time. And you didn’t realize it was the perfect piece of advice until three weeks later.

Subtle leaders are difficult to spot. But once you know how they go about their business and how the company treats them, you can see them for what they are. And once you recognize a subtle leader, figure out a way to spend time with them. Your career will be better for it.

Image credit: Pixabay

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Mediocrity is the Enemy

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How Successful Companies Reclaim Their Competitive Edge

Mediocrity is the Enemy

GUEST POST from Shep Hyken

In 1983, I read In Search of Excellence by Tom Peters and Robert Waterman. This iconic business book featured case studies of successful companies. Forty years later, many of these companies are no longer considered “excellent.” Some are no longer in business. Many organizations that once stood as industry leaders started operating on autopilot, allowing standards to slip, not paying attention to the competition and not keeping up with their customers’ expectations.

I recently interviewed John Rossman, a former Amazon executive, on Amazing Business Radio. We discussed the business challenge of sinking into mediocrity that he writes about in his new book, which he refers to as a manifesto, The Pig, the Lipstick and the Playbook of Champions.

One of the intriguing sections in his manifesto is titled The Tragic Tale of Competitive Advantage, where he refers to Kodak, Blockbuster and Xerox as “examples of once category-defining companies that could not move beyond the success that made them disrupters.” These are the types of brands whose leaders could have benefited from reading this short but powerful work.

Below are several key takeaways from our interview. These are leadership principles that can help us avoid mediocrity—or worse, failure—and improve our chances for success.

Leadership: The Pig and the Lipstick

Rossman explains that the “pig” in the title of his leadership manifesto refers to a successful business. The “lipstick” represents the lies we tell ourselves. For example, leaders say, “Next year, we’ll grow more.” “Next year, we won’t disappoint customers.” “Next year we’ll innovate.” These lies create two challenges that businesses face today:

Once a company becomes successful, it has an increasingly difficult time reinventing its value proposition.
A gradual acceptance of mediocrity in how the employees work together, serve customers and measure success can creep in. Over time, mediocrity doesn’t just become acceptable. It becomes the target.

Embrace Humility

To break free from mediocrity, Rossman emphasizes that change must begin with humility. Companies must be willing to admit their shortcomings, whether they’ve disappointed customers or employees or failed their own ambitions. He recommends instituting a formal Voice of the Customer program and paying close attention to disappointed customers. Rossman says, “I truly believe in humility as a starting point for change. Recognizing where we fall short with customers is crucial to being able to innovate and thrive.”

Don’t Play Defense

Rossman talked about “gold standard” companies that slipped from playing at the top of their game, including Boeing, Intel, Nike and Starbucks. Rossman referenced an interview with Howard Schultz, CEO of Starbucks, who summed up what happened as the company started changing its model. Schultz said, “The worst thing that a company can do, like a sports team, is start playing defense because you’re afraid to fail. That’s a disease.”

Rossman’s response to companies in that situation came from his Amazon days, when he learned about the concept of Big Bets.

Taking Big Bets

The concept of Big Bets is about ambition. Rossman explains, “The concept of big bets at Amazon is that the ‘big’ is the ambition, not the size of the bet. Everything is an experiment with the intention of winning, realizing that many won’t. Understanding that failure comes with the game of innovation is a critical mindset.”

In other words, an innovation mindset comes from running many small experiments with big intentions, knowing full well that many will fail, but also knowing that the ones that succeed will keep you competitive and can potentially transform the business. You must constantly place these bets, or your successes may eventually fall to the level of mediocrity as competition catches up and potentially passes you up.

A Perfect Ending

Toward the end of the manifesto, Rossman shares a Michelangelo quote that sums up his way of thinking and is a perfect way to end this article: “The greater danger for most of us lies not in setting our aim too high and falling short, but in setting our aim too low and ache, including Boeing, Intel, Nike and Starbucks. Rossman referenced an interview with Howard Schultz, CEO of Starbucks, who summed up what happened as the company started changing its model. Schultz said, “The worst thing that a company can do, like a sports team, is start playing defense because you’re afraid to fail. That’s a disease.”

Rossman’s response to companies in that situation came from his Amazon days, when he learned about the concept of Big Bets.

Taking Big Bets

A Perfect Ending

This article was originally published on Forbes.com.

Image Credits: Pexels

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The Importance of Over-committing

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Strategizing Offer Power

The Importance of Over-committing - Strategizing Offer Power

GUEST POST from Geoffrey A. Moore

Offer power is a function of competitive separation that creates a material difference in customer benefit such that your offer is chosen over its closest alternatives. Separation, in turn, is created by over-committing to a single vector of innovation, taking it to a level that the competition either cannot or will not match. Whatever vector of innovation you choose will define your core, your claim to fame, the capability that sets you apart from the rest. Every other form of innovation will be context, meaning it will still meet market standards but will not differentiate your offering.

With respect to offer power, the most common strategic mistake is to spread the R&D budget across multiple vectors of innovation, making progress on all fronts but never achieving a level of competitive separation that is truly impactful. To offset this tendency, best practice begins with over-committing to a single value discipline, along the lines described by Michael Treacy and Fred Wiersema in The Value Disciplines of Market Leaders. They call out three such disciplines: product leadership, customer intimacy, and operational excellence. Those of us in Silicon Valley might add a fourth, disruptive technology, but the key point is to be asymmetrical in the allocation of resources to take one, and only one of these disciplines, “all the way to bright.”

Value disciplines tend to align with customer sensitivity to price and performance, as illustrated by the diagram below:

Geoffrey Moore Value Disciplines

Each quadrant in this model prioritizes a different value proposition. For customers who want performance at any cost, disruptive technology is a good bet, albeit coming with risks and issues that other customers would not accept. For enterprise customers, who typically are looking for productivity gains, product leadership fills that bill. For customers who are just looking to check the box with a minimum offer, economy is their watchword, and operational excellence is the main path. And finally, for customers who need the offer but don’t want to be bothered, convenience is the value proposition that resonates most, and customer intimacy is needed to design the experience accordingly.

Whatever offer power strategy you prioritize will act as a filter on your R&D budget allocation to ensure maximum return on innovation. Here is a way to look at the landscape:

Geoffrey Moore Return on Innovation

There are three ways to get a return on R&D innovation. The first is the one we have been focused on thus far—differentiation that leads to customer preference. But there are two other sources of return, both of which have value in their own right. The first of these is neutralization. This is innovation focused on catching up to some other competitor’s differentiation in order to neutralize their competitive advantage over you. Thus, while Apple is acknowledged as a master of differentiation, Microsoft is a master of neutralization, as once-market-leading and now-defunct enterprises like WordPerfect, Lotus, Ashton-Tate, Novell, and Netscape will all testify. Neutralization allows your customer base to stay current with next-generation product advancements without having to change out vendors. The key point for vendors to keep in mind is that when neutralizing you are trying to catch up, not get ahead, and so the goal is to get to “good enough” as fast as possible and then go no further.

A third type of return on innovation comes from optimization, improving the production and delivery of your current offering without materially changing its features or benefits. This allows you to sustain market positions in mature categories, enabling you to compete on price or capture the savings for other purposes. Because this effort is associated with operational excellence, people often do not recognize it as a form of innovation, but one need only look at what Amazon has done to reengineer the entire retail experience end to end to realize how foolish an idea this is.

One final point: not all innovations create a return. Failed attempts are an inevitable element in any portfolio of innovation attempts, the key being to follow the mantra, win or learn! That said, by far the more common reason that innovation investments fail to create a return is that they fall short of delivering a meaningful impact. This is true of:

Investments in differentiation that do not go far enough to create meaningful competitive separation. Typically, the team was unwilling to be sufficiently asymmetrical in its resource allocation. As a result, while its products are indeed different, they are not so in a sufficiently compelling way to impact customer preference. This is how Oldsmobile and Mercury lost their franchises in the US auto market.
Investments in neutralization that do not get to market fast enough to get your offer into the consideration set. Typically, the team making an extra effort to outperform the competitor at their own game, a low-percentage bet at best, but in so doing has left the playing field uncontested in the meantime. By the time you get back in the game, it is too late. This is how Nokia lost its market leadership position in smartphones to Apple.
Investments in optimization that do not go deep enough to make a material difference. Typically, teams avoid the hard work of process re-engineering and settle for an “across-the-board cut,” which saves money but actually weakens rather than improves performance.

That’s what I think. What do you think?

Image Credit: Unsplash, Geoffrey Moore

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Top 10 Human-Centered Change & Innovation Articles of July 2025

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Top 10 Human-Centered Change & Innovation Articles of July 2025 Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are July’s ten most popular innovation posts:

Three Executive Decisions for Strategic Foresight Success or Failure — by Robyn Bolton
3 Secret Saboteurs of Strategic Foresight — by Robyn Bolton
Five Unsung Scientific Discoveries Driving Future Innovation — by Art Inteligencia
Unblocking Change — by Mike Shipulski
Why Elastocalorics Will Redefine Our World — by Art Inteligencia
People Will Be Competent and Hardworking – If We Let Them — by Greg Satell
The Unsung Heroes of Culture — by Braden Kelley and Art Inteligencia
Making it Safe to Innovate — by Janet Sernack
Strategic Foresight Won’t Save Your Company — by Robyn Bolton
Your Work Isn’t Transformative — by Mike Shipulski

BONUS – Here are five more strong articles published in June that continue to resonate with people:

Making People Matter in AI Era — by Janet Sernack
The Trust Network Knows — by Mike Shipulski
Fueling Competitive Advantage Through Continuous Experience Improvement — by Braden Kelley and Art Inteligencia
Overcoming the Fear of Innovation Failure — by Stefan Lindegaard
How Customer Advisory Boards Fuel World-Class Experiences — by Braden Kelley and Art Inteligencia

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

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The Killer Strategic Concept You’ve Never Heard Of

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You Really Need to Know About Schwerpunkt!

GUEST POST from Greg Satell

When Steve Jobs returned to Apple in 1997, his first mission was not to create but destroy. He axed a number of failing products and initiatives, such as the ill-fated Newton personal digital assistant and the Macintosh clones. Under Jobs, Apple would no longer try to be all things to all people.

What came after was not a flurry of activity, but a limited number of highly targeted moves. First came the candy-colored iMac. It was a modest success. Then came the iPod, iPhone and iPad, breakout hits which propelled Apple from a failing company to the most valuable company on earth. Each move shifted the firm’s center of gravity to a decisive point and broke through.

That, in essence, is the principle of Schwerpunkt, a German military term that roughly translates to “focal point.” Jobs understood that he didn’t have to win everywhere, just where it mattered and focused Apple’s resources on just a few meaningful products. The truth is that good strategy relies less on charts and analysis than on finding your Schwerpunkt.

Putting Relative Strength Against Relative Weakness

The iPod, Apple’s first major hit after Jobs’ return, didn’t do anything to undermine the dominance of Microsoft and the PC, but rather focused Apple’s energy on a nascent, but fragmented industry that made products that, as Jobs put it, “sucked.” At this early stage, Apple probably couldn’t have taken on the computer giants, but it mopped up these guys.

Yet the move into music players wasn’t just about picking on scrawny weaklings, it leveraged some of Apple’s unique strengths, especially its ability to design simple, easy-to-use interfaces. Jobs’ own charisma and stature, not to mention the understanding of intellectual property rights he gained from his Pixar business, made him almost uniquely placed to navigate the challenges of setting up iTunes store, which at the time was a quagmire.

In Good Strategy | Bad Strategy management scholar Richard Rumelt makes the point that good strategy puts relative strength to bear against relative weakness and that is a key part of Schwerpunkt. In order to find your focal point, you need to get a sense of where your strengths lie and where are the best opportunities to leverage those strengths.

That’s exactly what Steve Jobs did at Apple over and over again. Entering the music player business would not have worked for Microsoft or Dell, who both dominated the computer industry at the time. In fact, after the launch of the iPod both tried to create competitors and failed. The iPod was Apple’s Schwerpunkt, nobody else’s.

Identifying The Focal Point

In a military conflict, leaders determine where to concentrate their efforts by weighing a variety of factors, including commander’s intent, or the desired end state, the situation on the ground gleaned through intelligence, the terrain and the enemy’s disposition on that terrain. Officers spend their whole careers learning how to make wise decisions about schwerpunkt.

Business leaders need to weigh similar factors, including the internal capabilities of their organization such as talent, technology and information, the market context, the competitive landscape as well as what they can access through external partner ecosystems. By the time Steve Jobs returned to Apple, he had become a master at evaluating the forces at play.

With respect to the iPod, he felt confident in Apple’s ability to combine technology with design and that the market for digital music players, as he liked to put it, sucked. By looking at what competitors had to offer, he was confident that if he could create a device that would “put 1000 songs in my pocket,” he would have a hit product.

The only problem was that the technology to create such a product didn’t exist yet. That’s where the external ecosystem came in. On a routine trip to Japan to meet with suppliers, an engineer at Toshiba mentioned that the company developed a tiny memory drive that was about the size of a silver dollar, but didn’t know what it could be used for.

Jobs immediately recognized that the memory drive was his Schwerpunkt. He produced a $10 million check on the spot and got exclusive rights to the technology. Not only would he be able to create his iPod with the “1000 songs in my pocket” he so coveted, for a time at least, none of his competitors would be able to duplicate its capability.

Getting Inside The OODA Loop

When he was still a pilot, the legendary military strategist John Boyd developed the OODA loop to improve his own decision making in the cockpit. The idea is that you first OBSERVE, your surroundings, then you ORIENT that information in terms of previous knowledge and experiences. That leads you to DECIDE and ACT, which will change the situation in some way, that you will need to observe, orient, decide and act upon.

We can see how Steve Jobs employed the OODA loop in making the decision to immediately produce a $10 million dollar check for a technology that Toshiba had no idea what to do with. He took the new information he observed and immediately oriented it with previous observations he made about the market for digital music devices.

Yet what happened next was even more interesting. When the iPod came out, it was an immediate hit, which changed the basis of competition. Other computer companies, which were competing in the realm of laptops, desktops and servers, suddenly faced a very different market and moved to create their own digital music players. Dell’s Digital Jukebox launched in 2004, Microsoft’s Zune came out in 2006. Both failed miserably.

By then Apple was already preparing the launch of the iPhone, which would change the game again, causing its competitors to Observe, Orient, Decide in Act in reaction to what Apple was doing. Boyd called this “getting inside your opponent’s OODA Loop.” By continually having to orient and react to Apple, they weren’t able to gain the initiative.

Today, it’s hard to remember just how powerful firms like Microsoft and Dell were back then, but they were absolute giants. Nevertheless, by employing the concept of Schwerpunkt, Apple went from near bankruptcy to dominating its rivals in less than a decade.

A Journey Rather Than A Destination

The biggest strategic mistake you can make is to try and win everywhere at once. To win, you need to prevail in the decisive battles, not the irrelevant skirmishes. That, in essence, is the principle of Schwerpunkt—to identify a focal point where you can direct your resources and efforts.

When Steve Jobs returned to Apple, computer companies were duking it out in the PC market, yet he identified digital music players as his Schwerpunkt and the iPod made Apple a serious player. As his competitors were still reacting, he launched the iPhone and on it went. Whenever Steve Jobs would, towards the end of a product presentation say, “and just one more thing,” You could guarantee that he had identified a new Schwerpunkt.

Notice how Schwerpunkt is a dynamic, not a static, concept. It was Jobs’ ability to constantly innovate Apple’s approach, by constantly observing, reorienting and shifting the competitive context. In each case, his strategy was uniquely suited to Apple’s, capabilities, customers and ecosystem. Competitors Microsoft or Dell, more suited to the enterprise market, couldn’t be successful with a similar approach.

There is no ideal strategy, just ones that are ideally suited to a particular context, when relative strength can be brought to bear against relative weakness. Discovering the center of gravity at which you can break through is more of a journey than a destination, you can never be sure beforehand where exactly you will find it, but it will become clear once you’ve arrived.

— Article courtesy of the Digital Tonto blog
— Image credit: Unsplash

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Fearless Fashionistas Are Staying Ahead of Change

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Why Aren’t You?

Fearless Fashionistas Are Staying Ahead of Change

GUEST POST from Janet Sernack

As a fashion and lifestyle conceptualist and analyst for a major Australian department store group during the pre-Internet era, I co-created, with the GM of Marketing and GM of Women’s, Men’s, Children’s Apparel and Accessories, a completely new role. I took on the responsibility of forecasting and predicting customer, lifestyle, and fashion trends two to three years ahead of the present. While forecasting involves estimating future events or trends based on historical and statistical data, making predictions involves forming educated guesses or projections that do not necessarily rely on such data. Both forecasting and predictive skills are vital for developing strategic foresight—an organized and systematic approach to exploring plausible futures and anticipating, better preparing for, and staying ahead of change.

In this exciting new role, I had to ensure that my forecasts and predictions did not cause people to become anxious and tense, leading to poor or conflicting decisions involving millions of dollars. Instead, I needed to make sure that my forecasts convinced people that the well-researched information had been collected, captured, analyzed, and synthesized effectively. To ensure that the discovery of new marketing concepts is prompted by the development of strategic foresight, which enables people to make informed, million-dollar investment decisions by staying ahead of change.

This was before the revolutions in Design Thinking and Strategic Foresight. It taught me the fundamentals of agile and adaptive thinking processes, as well as the importance of creating and capturing value by viewing it from the customer’s perspective. It was initiated through rigorous research that involved framing the domain and scanning for trends by mentally moving back and forth among many scenarios, making links, connections, and unlikely associations. The information could then be actualized, analyzed, and synthesized to focus on evaluating a range of plausible futures as forecast scenarios. To envision the future by identifying the most promising or commercially viable trends in Australian marketing and merchandising, thereby supporting better policy-making across the organization, which consisted of forty-two department stores.

At the time, Australian fashion and lifestyle trends were considered six months behind those in Europe and the USA. This allowed me to utilize current and historical sales data, along with statistical methods, to create a solid foundation for the sales and marketing situation across various merchandise segments. Having completed a marketing degree as an adult learner, I applied and integrated marketing concepts and principles from product and fashion lifecycle management. Through being inventive, I built a fashion and lifestyle information system that had not previously existed, enabling the whole organization to stay ahead of change.

I conducted backcasting research and built relationships with top Australian manufacturers that supplied our customers, gathering evidence and feedback that supported or challenged my approach to developing trend-tracking processes over a three-year period. I traveled widely four times a year to Europe and the USA to research the fashion and lifestyle value chain, visiting yarn, textile, couture, and ready-to-wear shows to explore, discover, identify, and validate emerging and diverging trends, providing context and evidence of their evolution and convergence. This was further tested and validated by analyzing and synthesizing the most critical and commercially successful fashion and lifestyle ranges marketed and merchandised at that time in major global department stores and leading retail outlets.

Formal research was also carried out through various channels, including desktop research, fashion and lifestyle forecasting services, as well as USA and European media, to gather customer insights that could then be identified, analyzed, synthesized, and developed and implemented into key fashion marketing and merchandising trends across the entire group of forty-two department stores. This enabled them to present a coordinated marketing and merchandising approach across all apparel to customers and stay ahead of change.

This was my journey into what is now known as strategic foresight, laying the vital foundations for developing my brain’s neuroplasticity and neuroelasticity, and becoming an agility shifter, with a prospective mind and adaptive thinking strategy that enables me to stay ahead of change.

Staying ahead of change

It took me many years to realize that I was chosen for this enviable role, not because of my deep knowledge and extensive experience, but for my intuitive and unconventional way of thinking. In Tomorrowmind, Dr Martin Seligman calls this ‘prospection’, an ability to metabolize the past with the present to envisage the future. He states that a prospective mind extracts the nutrients from the past and the present, then excretes the toxins and ballast to prepare for tomorrow. He defines prospection as “the mental process of projecting and evaluating future possibilities and then using these projections to guide thought and action.”

This develops the ability to stay ahead of change by anticipating and adapting to it, and includes many elements, such as:

Being able to adopt both a systemic and tactical approach, as well as a structured and detailed perspective alongside an agile and flexible view of the current reality or present state, simultaneously.
Sensing, connecting, perceiving, and linking operational patterns, and analyzing and synthesizing them within their context.
Generating, exploring, and unifying possibilities and options for selecting the most valuable commercial applications that match customers’ lifestyle needs and wants.
Unlearning and viewing the world with fresh eyes through sensing and perceiving it through a paradoxical lens, and cultivating a ‘both/and’ bird’s-eye perspective.
Opening your heart, mind, and will to relearning and learning, letting go of what may have worked in the past, focusing your emotional energy, towards learning new mindsets and mental models and relearning how to perceive the world differently.
Wondering and wandering into fresh and multiple perspectives underlie the development of a strategic foresight capability.

This approach helps shift your focus across the polarities of thought, from a fixed, binary, or linear and competitive approach to one that is neuro-scientifically grounded. It aims to foster your neuroplasticity and neuroelasticity within your brain, enabling the development of new and diverse perspectives that support prospective, strategic, critical, conceptual, complementary, and creative thinking processes necessary for staying ahead of change.

Improves strategic thinking

Strategic foresight aims to anticipate, analyze, synthesize, adapt to, and shape the factors relevant to a person, team, or company’s business, enabling it to perform and grow better than its competitors and stay ahead of change. It requires confidence, capacity, and competence to partner effectively and to think and act differently, using cutting-edge analytics, proven creative tools, and artificial intelligence (AI). This approach empowers, enables, and equips individuals with better, more risk-informed strategic thinking. It also provides a foundation for creative thinking by helping people better understand the options and alternatives available to them. Additionally, it identifies potential developments that could lead to building a competitive advantage at the individual, team, or organizational level, enabling them to stay ahead of change, innovate, and succeed in an uncertain business environment.

Increases adaptability

In a recent article, ‘Navigating the Future with Strategic Foresight, the Boston Consulting Group stated:

“It’s not about gathering more data than everyone else but about being able to detect forward-looking signals, stretch perspectives, and interpret the data with fresh eyes. Uncertainty does not dissipate; rather, strategic foresight offers the clarity of direction that comes from greater confidence in data, assumptions, and analysis”.

The information gathered through strategic foresight enhances people’s ability and willingness to adapt their responses to uncertainty and unexpected situations and embrace change. It provides concrete evidence, in the form of data, assumptions, and analysis, to support people in being adaptive. This requires being open to unlearning, relearning, and learning, protecting you against anxiety, stress, and burnout, and helping you stay ahead of change and become resilient to create, invent, and innovate through chaos, uncertainty and disruption.

This is an excerpt from our upcoming book, “Anyone Can Learn to Innovate,” scheduled for publication in early 2026.

Please find out about our collective learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack . It is a collaborative, intimate, and profoundly personalized innovation coaching and learning program supported by a global group of peers over nine weeks. It can be customized as a bespoke corporate learning program.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem-focused, human-centric approach and emergent structure (Theory U) to innovation. It will also upskill people and teams and develop their future fitness within your unique innovation context. Please find out more about our products and tools.

Image Credit: Pixabay

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Why Innovators Can’t Ignore the Quantum Revolution

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Why Innovators Can't Ignore the Quantum Revolution

GUEST POST from Art Inteligencia

In the world of innovation, we are always looking for the next big thing—the technology that will fundamentally change how we solve problems, create value, and shape the future. For the past several decades, that technology has been the classical computer, with its exponential increase in processing power. But a new paradigm is on the horizon, one that promises to unlock capabilities previously thought impossible: quantum computing. While it may seem like a distant, esoteric concept, innovators and business leaders who ignore quantum computing are doing so at their own peril. This isn’t just about faster computers; it’s about a complete re-imagining of what is computationally possible.

The core difference is simple but profound. A classical computer is like a single light switch—it can be either ON or OFF (1 or 0). A quantum computer, however, uses qubits that can be ON, OFF, or in a state of superposition, meaning it’s both ON and OFF at the same time. This ability, combined with entanglement, allows quantum computers to perform calculations in parallel and tackle problems that are intractable for even the most powerful supercomputers. The shift is not incremental; it is a fundamental leap in computational power, moving from a deterministic, linear process to a probabilistic, multi-dimensional one.

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Quantum as an Innovation Engine: Solving the Unsolvable

For innovators, quantum computing is not a threat to be feared, but a tool to be mastered. It provides a new lens through which to view and solve the world’s most complex challenges. The problems that are “hard” for classical computers—like simulating complex molecules, optimizing global supply chains, or cracking certain types of encryption—are the very problems where quantum computers are expected to excel. By leveraging this technology, innovators can create new products, services, and business models that were simply impossible before.

Key Areas Where Quantum Will Drive Innovation

Revolutionizing Material Science: Simulating how atoms and molecules interact is a notoriously difficult task for classical computers. Quantum computers can model these interactions with unprecedented accuracy, accelerating the discovery of new materials, catalysts, and life-saving drugs in fields from energy storage to pharmaceuticals.
Optimizing Complex Systems: From optimizing financial portfolios to routing delivery trucks in a complex network, optimization problems become exponentially more difficult as the number of variables increases. Quantum algorithms can solve these problems much faster, leading to incredible efficiencies and cost savings.
Fueling the Next Wave of AI: Quantum machine learning (QML) can process vast, complex datasets in ways that are impossible for classical AI. This could lead to more accurate predictive models, better image recognition, and new forms of artificial intelligence that can find patterns in data that humans and classical machines would miss.
Securing Our Digital Future: While quantum computing poses a threat to current encryption methods, it also offers a solution. Quantum cryptography promises to create uncrackable communication channels, leading to a new era of secure data transmission.

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Case Study 1: Accelerating Drug Discovery for a New Tomorrow

A major pharmaceutical company was struggling to develop a new drug for a rare disease. The traditional method involved months of painstaking laboratory experiments and classical computer simulations to model the interactions of a new molecule with its target protein. The sheer number of variables and possible molecular configurations made the process a slow and expensive trial-and-error loop, often with no clear path forward.

They partnered with a quantum computing research firm to apply quantum simulation algorithms. The quantum computer was able to model the complex quantum mechanical properties of the molecules with a level of precision and speed that was previously unattainable. Instead of months, the simulations were run in days. This allowed the human research team to rapidly narrow down the most promising molecular candidates, saving years of R&D time and millions of dollars. The quantum computer didn’t invent the drug, but it acted as a powerful co-pilot, guiding the human innovators to the most probable solutions and dramatically accelerating the path to a breakthrough.

This case study demonstrates how quantum computing can transform the bottleneck of complex simulation into a rapid discovery cycle, augmenting the human innovator’s ability to find life-saving solutions.

Case Study 2: Optimizing Global Logistics for a Sustainable Future

A global shipping and logistics company faced the monumental task of optimizing its entire network of ships, trucks, and warehouses. Factors like fuel costs, weather patterns, traffic, and delivery windows created a mind-bogglingly complex optimization problem. The company’s classical optimization software could only provide a suboptimal solution, leading to wasted fuel, delayed deliveries, and significant carbon emissions.

Recognizing the limitations of their current technology, they began to explore quantum optimization. By using a quantum annealer, a type of quantum computer designed for optimization problems, they were able to model the entire network simultaneously. The quantum algorithm found a more efficient route and scheduling solution that reduced fuel consumption by 15% and cut delivery times by an average of 10%. This innovation not only provided a significant competitive advantage but also had a profound positive impact on the company’s environmental footprint. It was an innovation that leveraged quantum computing to solve a business problem that was previously too complex for existing technology.

This example shows that quantum’s power to solve previously intractable optimization problems can lead to both significant cost savings and sustainable, planet-friendly outcomes.

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The Innovator’s Call to Action

The quantum revolution is not a distant sci-fi fantasy; it is a reality in its nascent stages. For innovators, the key is not to become a quantum physicist overnight, but to understand the potential of the technology and to start experimenting now. Here are the steps you must take to prepare for this new era:

Educate and Evangelize: Start a dialogue about quantum computing and its potential applications in your industry. Find internal champions who can explore this new frontier and evangelize its possibilities.
Find Your Partners: You don’t have to build your own quantum computer. Partner with academic institutions, research labs, or quantum-as-a-service providers to start running pilot projects on a cloud-based quantum machine.
Identify the Right Problems: Look for the “intractable” problems in your business—the optimization challenges, the material science hurdles, the data analysis bottlenecks—and see if they are a fit for quantum computing. These are the problems where a quantum solution will deliver a true breakthrough.

The greatest innovations are born from a willingness to embrace new tools and new ways of thinking. Quantum computing is the most powerful new tool we have ever seen. For the innovator of tomorrow, understanding and leveraging this technology will be the key to staying ahead. The quantum leap is upon us—are you ready to take it?

Image credit: Gemini

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Leaders’ Responsibility is Their Response

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Leaders' Responsibility is Their Response

GUEST POST from Mike Shipulski

When you’re asked to do more work that you and your team can handle, don’t pass it onto your team. Instead, take the heat from above but limit the team’s work to a reasonable level.

When the number of projects is larger than the budget needed to get them done, limit the projects based on the budget.

When the team knows you’re wrong, tell them they’re right. And apologize.

When everyone knows there’s a big problem and you’re the only one that can fix it, fix the big problem.

When the team’s opinion is different than yours, respect the team’s opinion.

When you make a mistake, own it.

When you’re told to do turn-the-crank work and only turn-the-crank work, sneak in a little sizzle to keep your team excited and engaged.

When it’s suggested that your team must do another project while they are fully engaged in an active project, create a big problem with the active project to delay the other project.

When the project is going poorly, be forthcoming with the team.

When you fail to do what you say, apologize. Then, do what you said you’d do.

When you make a mistake in judgement which creates a big problem, explain your mistake to the team and ask them for help.

If you’ve got to clean up a mess, tell your team you need their help to clean up the mess.

When there’s a difficult message to deliver, deliver it face-to-face and in private.

When your team challenges your thinking, thank them.

When your team tells you the project will take longer than you want, believe them.

When the team asks for guidance, give them what you can and when you don’t know, tell them.

As leaders, we don’t always get things right. And that’s okay because mistakes are a normal part of our work. And projects don’t always go as planned, but that’s okay because that’s what projects do. And we don’t always have the answers, but that’s okay because we’re not supposed to. But we are responsible for our response to these situations.

When mistakes happen, good leaders own them. When there’s too much work and too little time, good leaders tell it like it is and put together a realistic plan. And when the answers aren’t known, a good leader admits they don’t know and leads the effort to figure it out.

None of us get it right 100% of the time. But what we must get right is our response to difficult situations. As leaders, our responses should be based on honesty, integrity, respect for the reality of the situation and respect for people doing the work.

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